How to submit an Income Tax Return to your property?

According to the applicable legislation, the taxpayer is obliged to file a tax return for income tax:

• when selling real estate of which he was the owner for a period of less than five years and the real estate was acquired after 1.1.2011. The term starts counting from the day of registration by Cadastre department.
• when renting real estate - apartment, house.

How to calculate the amount of tax?

You will pay tax in the amount of 19% or 25% (depending on the amount of the tax base for natural persons - non-entrepreneurs) on the difference between the selling price and the purchase price, provided that you sell the property at a profit. You can reduce the difference between the sale price and the purchase price by demonstrably incurred expenses related to a specific property (such as payment for an expert, lawyer, commission of a real estate agency, costs related to reconstruction).

Taxation on the sale of real estate by inheritance

If you acquired the property by inheritance from the testator who was in the direct family line, or from the spouse, the income from the sale will be exempt from tax if at least 5 years have passed since the acquisition of the property in question into the ownership of the testator (indigent). The exception may be that the ownership period of 5 years is calculated together your ownership and the ownership of your testator. Don´t hesitate to contact us or your tax administrator in case of need.

Real estate rental

A person who rents real estate as a non-entrepreneur is obliged to apply to the tax administrator for registration by the end of the calendar month after the end of the month in which he rented the real estate. The Income Tax Act stipulates that rental income also includes income from renting real estate, including income from renting movable things that are rented as accessories to real estate. It means that the rent agreed in the lease agreement together with payments for performance connected with the use of the property (paid by the landlord) is subject to taxation. If it is a property that is jointly owned by the spouses, the registration obligation applies to the spouse who signed the lease agreement and is therefore listed as the lessor in it. If both spouses are listed as lessors in the contract, both spouses are required to register.

You can find the forms on the financial report page: https://www.financnasprava.sk/sk/elektronicke-sluzby/verejne-sluzby/katalog-danovych-a-colnych/katalog-vzorov-tlaciv

If you need advice, write to us at info@desire.sk. As part of our services, we can also prepare a complete Declaration for you, which you only need to sign and send. If you are abroad or don't want to deal with it, we offer a "turnkey" solution including electronic submission.

Writed by: Maria CILLEROVA, RSc.